Landmark Business.com sale: “only” $2M

The actual value of the landmark business.com sale was only $2M, not $7.5M.

Until recently, Business.com was considered the highest domain name sale ever at a reported $7.5M. (There have since been higher domain sales, pushing business.com down the list.)

But it turns out the $7.5M sale of Business.com wasn’t that much after all. It wasn’t a cash deal, and was for $7.5M in illiquid stock. We knew it wasn’t worth the full $7.5M, but we had no idea how much it was actually worth…until now. How much did the stock end up being worth? Only $2M, it turns out.

This is according to Jake Winebaum, founder of eCompanies. eCompanies was an internet incubator that started Business.com. In a recent article in Newsweek, Winebaum points out that $7.5M in stock in an inflated company isn’t $7.5M in cash. When the company refinanced in 2004 it redeemed the stock for $2.0M.

Comments

  1. Thomas says

    I wonder how much Business.com will sell for at the bankruptcy auction?

    As you reported, Toys R’US bought Toys.com for $5.1 million this year at a bankruptcy auction.

    Perhaps, Marc O. will own it again? :-)

Leave a Reply